Former American Apparel lender Lion Capital nominates new director to retailer's board

American Apparel Inc., which recently overhauled its board after a dramatic corporate kerfuffle, is getting a new director.

The Los Angeles retailer said that former lender Lion Capital has designated Robert Mintz as its newest board member, according to a securities filing.

Mintz serves as chief executive of Rupari Foods, which sells ready-to-eat ribs and barbecue supplies. He could be seated on the board in a week or two, according to a person familiar with the matter.

The food executive was described by the Wall Street Journal as a former schoolmate of Dov Charney, the American Apparel founder who was booted as chairman and suspended as chief executive in June.

Charney currently works as a paid consultant for the retailer, pending a company investigation into allegations of inappropriate behavior.

Lion Capital holds warrants to buy 12% of American Apparel's stock, which allows it to nominate two directors.

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Gary Friedman / Los Angeles Times

Dov Charney was ousted as chairman and suspended as chief executive pending an investigation into allegations of inappropriate behavior. He is working now as a paid consultant for the company he founded.

Dov Charney was ousted as chairman and suspended as chief executive pending an investigation into allegations of inappropriate behavior. He is working now as a paid consultant for the company he founded. (Gary Friedman / Los Angeles Times)

The London private equity company had been a longtime lender to American Apparel. Its most recent $10-million loan to American Apparel was purchased last month by New York investment firm Standard General.

Standard General, which controls a nearly 44% stake in American Apparel, has committed up to $25 million in financial assistance to the troubled clothing company.

As part of the deal, American Apparel agreed to replace all but two members of the board. Over the last month, five new directors have been seated, including its first two female members.

Mintz will be the sixth new director, and he will expand the board to eight members.